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Singapore Airlines has reported a steep fall in quarterly net profit even as revenue and passenger numbers hit new highs, underscoring how one-off accounting gains and associate losses are masking the strength of underlying travel demand.
Record Revenue and Strong Loads Despite Profit Slump
In its third quarter ended December 31, 2025, Singapore Airlines Group posted net profit of S$505 million, almost 69 per cent lower than the S$1.63 billion recorded a year earlier. The sharp decline has raised eyebrows among casual observers, but it stems largely from accounting effects rather than a sudden weakening of the core business.
Stripping out last year’s one-off, non cash gain from the disposal of its Vistara stake as part of the Air India Vistara merger, the airline’s operating picture looks notably stronger. Group revenue climbed about 5.5 per cent year on year to a record S$5.5 billion in the quarter, while operating profit rose nearly 26 per cent to S$792 million. Those figures reflect a still buoyant appetite for air travel across SIA’s network.
For travellers, the headline profit drop may suggest a struggling carrier, but the underlying numbers tell a different story. Demand remains robust, aircraft are flying full, and the airline is generating more revenue per seat on many routes. The pressure on net profit is tied to factors such as prior-year gains and share of losses from associated airlines, rather than weak ticket sales.
Passenger Demand Remains Robust Across SIA and Scoot
The SIA Group, which includes full service Singapore Airlines and low cost subsidiary Scoot, carried 10.9 million passengers in the quarter, up 6.3 per cent from a year earlier. This continues a post pandemic trend in which Singapore has re established itself as a key hub for traffic between Asia, Europe, Australia and North America.
Passenger yields, a key measure of how much revenue the airline earns per passenger kilometre flown, edged up about 1.9 per cent to 10.9 Singapore cents. That incremental gain is notable given rising competition on popular regional and long haul routes, and it suggests SIA still commands pricing power on many of its premium heavy services.
Load factors remain high, supported by both business and leisure traffic. The strong volumes reflect healthy demand for core markets such as North Asia, South Asia and Australia, as well as growing interest in Singapore as a destination and stopover point. For travellers, this strength means more frequencies and route options, but it also means that popular departures can sell out earlier and that attractive promotional fares may be less plentiful on peak dates.
The expansion of Scoot continues to be an important part of the story. The low cost carrier has been a major contributor to growth in passenger numbers and capacity, giving budget conscious travellers more choices on regional routes while feeding long haul services operated by Singapore Airlines.
Air India Investment and Cargo Softness Weigh on Earnings
While the core passenger business is performing well, SIA’s earnings are being pulled down by two main factors. The first is the absence of last year’s one off gain from the disposal of Vistara, which inflated prior year profit and makes current numbers look weaker by comparison.
The second is the group’s share of losses from associated companies, particularly its stake in Air India. In the latest quarter, losses from associates widened to S$178 million as SIA recognised a full quarter of Air India’s results, compared with only one month a year earlier. Management has reiterated that it remains firmly committed to the investment, viewing India as a fast growing aviation market where a stronger Air India could become a powerful partner.
Cargo revenue has also softened, slipping as yields come under pressure from increased capacity and a more challenging global trade backdrop. For most leisure and business passengers, this is a secondary issue, but it does mean that SIA is relying even more on passenger revenue to drive performance while it manages volatility in freight markets.
These financial headwinds are largely peripheral to the day to day travel experience. They do, however, influence how aggressively the airline can invest in fleet renewal, cabin upgrades and new routes, all of which ultimately shape the product that passengers see.
What Travellers Can Expect on Fares, Capacity and Service
With demand expected to remain healthy in the final quarter of the financial year, travellers are unlikely to see widespread discounting on key routes. High load factors and firm yields suggest that Singapore Airlines will continue to focus on revenue quality rather than chasing volume with aggressive fare cuts.
For consumers, this means planning ahead remains crucial, especially for peak travel periods such as major holidays and school breaks. Early bookings are likely to secure better prices and preferred flight times, while last minute shoppers may face higher fares or reduced seat availability in popular cabins.
On the positive side, the strong operating profit and revenue base support continued investment in product and network. SIA has been renewing its fleet with more fuel efficient aircraft and refreshing cabins across long haul and regional services, which should translate into quieter cabins, improved inflight entertainment and more modern seating over time. Scoot’s growth, meanwhile, expands lower cost options out of Singapore to secondary cities across Asia and beyond.
Frequent flyers may also benefit from the airline’s stable financial footing, which allows it to maintain loyalty programme benefits and partnerships. While airlines around the world periodically adjust mileage earning and redemption rates, there is currently no indication that SIA’s latest financial results will trigger abrupt changes that disadvantage regular customers.
Strategic Partnerships and Network Connectivity for Future Travel
Beyond its own fleet, Singapore Airlines is leaning more heavily on partnerships to deepen connectivity and appeal to travellers. The group has recently formalised a strategic joint business partnership with Malaysia Airlines, approved by regulators in Singapore and Malaysia. The agreement paves the way for coordinated schedules, joint fares and revenue sharing on certain routes.
For travellers, closer cooperation between the two carriers should over time translate into more seamless itineraries between Singapore and Malaysian destinations, better coordinated connections and a broader range of fare options across both networks. It may also enhance through check in and baggage handling for journeys that involve both airlines on a single ticket.
In India, SIA’s tie up with Air India is central to its long term growth strategy. Although the investment is currently weighing on earnings, the intent is to secure a strong position in one of the world’s most dynamic aviation markets. Travellers could eventually see a more joined up network between Singapore and multiple Indian cities, with improved schedules and product consistency as Air India’s transformation progresses.
Overall, the latest figures show that Singapore Airlines remains financially solid, with strong demand and growing revenue supporting a wide and evolving network. For passengers, the headline profit decline is less important than the underlying trend a carrier that continues to fill its planes, invest in service and double down on partnerships that promise more options and connectivity in the years ahead.